VIENNA (Reuters) - BMW's British brand Mini will add another model to the products which Magna builds for it in Austria, newspaper Kleine Zeitung reported on Wednesday.

Austria-based Magna-Steyr already assembles the Mini Countryman in Graz and has won a contract to build the Mini Paceman model, a two-door "sports activity coupe," the paper quoted BMW development head Klaus Draeger as saying.

"Yes, we will have the Paceman built in Graz too," he told the paper. "As the auto is technically based on the Countryman it makes sense to go to Graz for this as well."

Production of the Paceman -- the seventh model in the Mini range -- is set to start in late 2012 so sales can start in 2013, the paper said. Output levels were not yet fixed but were expected to be around 20,000 units a year, it added.